Decline in Core Business Revenue Leads to Shrunken Operating Profit and Net Profit for Himalayan Laghubitta in Q4
Tue, Aug 1, 2023 8:15 AM on Financial Analysis, Latest,
Himalayan Laghubitta Bittiya Sanstha Limited (Former Civil Laghubitta) (HLBSL) has published its fourth quarter report for the recently concluded financial year 2079-80, with a sharp decline in its Net profit by 78.50 percent. In the fourth quarter of the FY 2079-80, the company earned only Rs. 1.53 crores as opposed to Rs. 7.14 crores that the company had profited in the corresponding quarter of the FY 2078-79.
Both Net Operating Profit--core revenue--and Operating profit of the company has plunged considerably in the recently passed quarter by 24.52 and 79.04 percent, respectively. In Q4 of fiscal year 2079-80, the company’s core revenue shrunk by almost a quarter to amount to Rs. 20.23 crores.
The microfinance company has also incurred Rs. 1.32 crore in impairment charges, which has negatively affected the profitability of the company.
The Non-performing Loan (NPL) of the financial institution, has increased in the last quarter of the financial year 079-80 totaling to 2.37 percent.
The distributable profit of the company sums up to Rs. 60.98 lakhs for its shareholders, while the distributable profit per share, despite an Earnings per Share (EPS) ratio of Rs. 4.81, is only Rs. 1.91.
HLBSL maintains a paid-up capital of Rs. 31.98 crores and has Rs. 8.80 crores in the form of reserves and Rs. 60.98 lakhs as retained earnings.
| Particulars (In Rs '000) | Himalayan Laghubitta | ||
|---|---|---|---|
| Q4 2079/80 | Q4 2078/79 | Difference | |
| Paid Up Capital | 319,818.13 | 288,124.44 | 11.00% |
| Share Premium | 45,543.05 | 45,543.05 | 0.00% |
| Retained Earnings | 6,098.32 | 36,815.17 | -83.44% |
| Reserves | 88,045.77 | 74,986.26 | 17.42% |
| Borrowings | 3,170,377.28 | 2,512,628.18 | 26.18% |
| Deposits from Customers | 994,026.14 | 977,839.02 | 1.66% |
| Net Interest Income | 202,352.22 | 268,091.67 | -24.52% |
| Personnel Expenses | 153,644.95 | 148,148.53 | 3.71% |
| Impairment Charges | 13,221.00 | - | - |
| Write Back | 1,078.06 | -100.00% | |
| Operating Profit | 21,992.78 | 104,907.38 | -79.04% |
| Net Profit | 15,370.01 | 71,493.67 | -78.50% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 6,098.32 | - | - |
| Distributable profit per Share (Rs.) | 1.91 | - | - |
| Capital Adequacy (%) | 9.56 | 10.97 | -12.85% |
| NPL (%) | 2.37 | 1.47 | 61.22% |
| Cost of Fund (%) | 11.34 | 10.91 | 3.94% |
| Basr Rate (%) | 18.92 | 17.69 | 6.95% |
| EPS (In Rs.) | 4.81 | 24.81 | -80.63% |
| Net Worth per Share (In Rs.) | 143.68 | 154.61 | -7.07% |
| Qtr end PE Ratio (times) | 156.89 | - | - |
| Qtr End Market Price | 754.00 | - | - |
